OKLAHOMA CITY-A private investor from California has put up $9.3 million for a 251,149-sf office building, primarily filled by government agencies tied to one-year leases. The deal crossed the finish line with a $7.3-million loan outfitted with a re-tenanting reserve for finish-outs and commissions.
Vinod Gupta of Agora Hills acquired his first office building in the city although he does hold a portfolio of multifamily properties in Oklahoma and Texas. James Conley, vice president of BMC Capital LP's Wilmington, DE office, tells GlobeSt.com that Gupta secured a loan in less than 45 days to take title from USA Projects Ltd., an Oklahoma limited liability company led by Richard Geren, to the two-story Lincoln Plaza Office Park at 4545 N. Lincoln Blvd.
The Oklahoma Healthcare Authority is the lead tenant in the 12.18-acre development, filling 83,000 sf. Conley says the roster includes offices for the attorney general, treasurer, narcotics division and Homeland Security. And all, he says, are on one-year leases so the Atlanta-based lender built in a $750,000 reserve to cover future re-tenanting if needed. But, the loan arranger says the agencies, occupying 91% of the building, most likely will continue to stay put for the long haul. "There's nothing in the marketplace where they could pay this rent," he says, citing a rate under $10 per sf versus the $15-per-sf average for comparable office space.
Conley says the funding is a 75% loan-to-value vehicle with a 10-year term, fixed-rate interest of 6.07% and 30-year amortization. Bruce Marshall with Sperry Van Ness in Dallas brokered the sale.
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